Google Links

Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Analyse financial resources
   • Financial resources required to achieve council objectives are identified and incorporated within budgets.
   • Additional expenditure required is forecast and provisions are made for access to required finances.
   • Contingency plans for obtaining additional financial resources are developed in the event of a shortfall of available funds.
2. Interpret financial and economic information
   • Financial reports are analysed by calculating balance sheet ratios, income statement ratios and cash flow statement ratios.
   • Macro and micro economic factors are identified and their impact on council's financial capabilities is evaluated.
   • Financial performance of business units/councils are reviewed and reported appropriately.
3. Use financial information to support decision making
   • Different financial scenarios are identified and modelled to support decision-making process.
   • Cost-benefit analysis is conducted to support viability of council activities.
   • Appropriate financial advisers are consulted when using financial information to support business decisions.
   • Accurate financial information is obtained and analysed when developing business unit plans.
   • Decisions are made using updated financial information.
4. Maximise returns on financial resources
   • Actual income and expenditure are monitored against budgets to ensure available and budgeted resources are not exceeded.
   • Corrective action is taken when deviations in budgets occur, and variations are explained.
   • Data on the use of financial resources is collected, analysed and reported appropriately.
   • Recommendations for improving returns on financial resources are communicated to management.
   • Performance indicators are discussed with managers and staff and agreed upon.

Required Skills

This describes the essential skills and knowledge and their level required for this unit

Required Skills

highlevel research analysis and interpretation skills in relation to management accounting and finance negotiation numeracy skills to support budgeting budget analysis and financial and economic analysis including modelling decision making application of decision making strategies to a range of business and financial scenarios

Required Knowledge

relevant financial and accounting principles relating to analysis and interpretation of financial reports and resources financial and accounting terminology and systems

Evidence Required

Overview of assessment requirements	A person who demonstrates competency in this unit will be able to perform the outcomes described in the elements to the required performance level detailed in the performance criteria The units skill and knowledge requirements must also be demonstrated The candidate will demonstrate the capacity to interpret and apply financial and economic data to decision making
Critical aspects of evidence to be considered	The demonstrated ability to use and analyse financial and economic information to achieve council objectives understand and apply tasks associated with interpreting and using the financial information outlined in the range statement
Context of assessment	Assessment of performance requirements in this unit should be undertaken with the context of the local government framework Competency is demonstrated by performance of all stated criteria including the range of variables applicable to the workplace environment
Method of assessment	The following assessment methods are suggested preparation of a major workplace project reportportfolio that may incorporate assessment of related units as a key form of assessment that enables candidates to integrate the learning and assessment project into their regular work responsibilities which enables integrated and holistic assessment of the complex skills and knowledge addressed in this unit observation of the learner performing a range of workplace tasks over sufficient time to demonstrate hisher handling of a range of contingencies written and oral questioning to assess knowledge and understanding completion of workplace documentation thirdparty reports from experienced practitioner completion of selfpaced learning materials including personal reflection and feedback from trainer coach or supervisor
Evidence required for demonstration of consistent performance	Evidence should be gathered over a period of time in a range of actual or simulated management environments
Resource implications	Access to a workplace or simulated case study that provides the following resources relevant council documents such as strategic and operational plans relevant local government legislation and regulations

---

Range Statement

The Range Statement relates to the Unit of Competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the Performance Criteria is detailed below.
Economic factors may include:	interest rates regional, state and national economic conditions and trends unemployment rates inflation government fiscal and monetary policies consumer confidence
Financial information include:	accountant prepared reports balance sheets profit and loss statements cash flow statements financial ratios budgets: operational departmental council estimated and actual cost and revenue
Performance indicators include:	return on investment credit ratings reductions in expenditure increases in income

---